Deductions-Do I include the sales tax on the receipt of the purchase?
abby asked:
Example - if I deduct office supplies for my business, do i deduct the cost of the supply including the sales tax on it too?
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Example - if I deduct office supplies for my business, do i deduct the cost of the supply including the sales tax on it too?
April 1st, 2009 at 2:08 pm
Yes, it is part of your cost for conducting your business. However, do not show it separately. As an example, if a supply item costs $1.00 and the tax is $.07, your total cost is $1.07 and this is the amount ($1.07) that you will claim as a cost of doing business.
April 4th, 2009 at 1:47 pm
First of all, you need to make sure you have all of your reciepts if your doing your deductions. Secondly, when your filing your deductions this is going on the federal form under work expense. The tax that you pay is actually a state sales tax. So no you would not be able to claim the sales tax that you paid for your items on your federal form. However, (in the state of Indiana) if you pay out more in sales tax on ANY purchases you have made (mind you need to have ALL of your reciepts) you can claim the sales tax here on you state tax form if it exceeds your standard state tax deduction.